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Fri, May

GHANA’S OIL PRODUCTION TO HIT 500,000 BARRELS IN 2024

Business & Economy

Ghana continues to make strides as an emerging oil producer in Africa, targeting increased volumes of oil production in the next few years.

Ghana continues to make strides as an emerging oil producer in Africa, targeting increased volumes of oil production in the next few years.

Aker Energy ASA has confirmed a significant offshore resource base in Ghana and has committed to scale up new developments in the Deepwater Tano/Cape Three Points block (DWT/CT).

A government delegation, led by Finance Minister Ken Ofori-Atta, on Wednesday announced to investors in Oslo, Norway, that overall crude oil production from Ghana is expected to more than double over the next four years as a result of the development.

Creative exploitation

Addressing the meeting of 20 key international companies, Mr Ofori-Atta said Ghana has reasserted herself strongly as a key destination for petrochemical industry players.

Aker Energy ASA last week announced the biggest oil find in Africa, of 450-550 million barrels, with potential recoverable reserves of nearly one billion barrels.

“Overall, crude oil production is expected to increase from 196,089 barrels per day in 2019 to 420,020 barrels per day in 2023,” Mr Ofori-Atta said, according to a release from the Ministry of Finance.

The Minister for Finance said the vision of the government is to create an optimistic, self-confident and prosperous nation by creatively harnessing human and natural resources.

He added that Ghana would operate within a democratic, open and fair society in which mutual trust and economic opportunities exist for all.

According to Deputy Energy Minister Mohammed Amin Adam, Ghana’s crude oil production is expected to reach half a million barrels by 2024.

Tema Drydock and Shipyard

The delegation, which included Minister of Transport Kwaku Ofori Asiamah, held extensive discussions with Aker and other related entities.

The discussions also highlighted plans to develop Tema Drydock and Shipyard. This is in line with President Akufo-Addo’s vision to ensure that Ghana develops a shipbuilding and floating production storage and offloading (FPSO) capacity.

The Government of Ghana is the sole shareholder in PSC Tema Shipyard Company, which operates Tema Shipyard.

Kjell Inge Rokke, the majority owner of Aker, a shipping and offshore drilling conglomerate, announced his commitment to contribute significantly to the President’s vision to make Ghana a major shipbuilding and repair works hub internationally.

Massive potential

Between 2012 and 2016, Hess, an oil and gas company, sought unsuccessfully to appraise the Pecan field (which now has Aker as its operator) and agreed terms with the Government of Ghana on a feasible plan for development of the discovery.

Hess’s initial assessment indicated resources of 230 million barrels of oil equivalent.

In 2017, following discussions with Ghana National Petroleum Corporation, Aker announced its acquisition of Hess’s interest in the DWT/CT licence.

Aker and its partner, working closely in conjunction with the Petroleum Commission and GNPC, immediately undertook preparations for an expansive drilling programme, Pecan 4A being the first of three planned wells.

Based on existing subsurface data from seismic and wells drilled, including an analysis of the Pecan-4A well result, the existing discoveries are estimated to contain gross contingent resources (2C) of between 450 and 550 million barrels of oil equivalent (mmboe). Aker Energy estimates that with the next two well targets, the total volume potential is between 600 and 1,000mmboe.

$10bn investment

In order to develop the DWT/CT fully, the partners will be required to make significant capital investment in Ghana. Estimates of the sums involved are in excess of US$10bn in total.

The Ghanaian delegation in Oslo includes Deputy Finance Minister Charles Adu Boahen, Petroleum Commission chief executive officer Egbert Faibille and the CEO of Ghana Gas, Ben Asante.

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